Woolworths Holdings plans to accelerate the rollout of its next-generation stores across South Africa after using its revamped Tygervalley outlet as a blueprint for a new retail format. The concept combines food, fashion, beauty and home under one roof while placing greater emphasis on service and personalisation.

Tygervalley sets blueprint

The Tygervalley store, which opened in August 2025, was Woolworths’ first next-generation outlet. Its less rigid layout includes services such as denim lasering, tailoring, fitting and beauty treatments, while upgraded bakery, butchery, fishmonger, cheese and cellar counters broaden the food offering and create a more experiential shopping environment.

The format also reflects Woolworths’ sustainability push, with the store using responsibly sourced timber and locally produced boards. The materials were selected partly for their ability to be repurposed or recycled at the end of their useful life, linking the physical redesign to the retailer’s broader environmental goals.

Bigger retail investment

Woolworths said in its 2026 annual report that the Tygervalley outlet was the first store built around the new format and that it plans to accelerate openings. The board approved additional investment in next-generation stores, customer and brand initiatives and artificial intelligence capabilities during the year.

The retailer invested R2.4 billion ($144.9 million) in capital expenditure during fiscal 2026, with most of the spending directed toward growth projects, including the new store format. Woolworths said its physical retail strategy is responding to customers who increasingly expect greater choice, convenience and personalised services when they shop.

Discount retailers, wholesalers and aggressively priced online platforms are competing for the same consumer spending, increasing pressure on traditional stores to offer something beyond products. Woolworths said artificial intelligence is also changing how customers discover products, receive personalised recommendations and complete purchases.

Food formats expand

Alongside its larger stores, Woolworths is expanding smaller food-led formats as it builds around its Food business. The group had 101 Woolworths Foodstop outlets at Engen petrol stations by fiscal 2026, more than 230 WCafes and Go-To locations, and 10 Woolworths Now Now takeaway outlets across South Africa.

Foodstop traces its roots to a 2000 pilot at a Cape Town petrol station, testing whether motorists would use a 24-hour convenience store carrying Woolworths products. The concept gained traction, leading Woolworths and Engen to formally expand their partnership in 2003 and develop the network nationwide.

Woolworths is also testing newer formats through its Ventures business, including premium tuck shops at private schools, food trucks and event-based concepts. Its tuckshop format began at Springfield Convent in 2023, while Curro Century City in Cape Town joined the model in 2026.

New stores, new channels

The retailer has also expanded its Food Emporium concept, with two locations currently operating. The first opened at The Village Square in Durbanville, Cape Town, in 2025, followed by a second outlet at Dainfern Square in Johannesburg in August 2026.

Woolworths opened its first WCafe in 2009 at Gateway Mall in KwaZulu-Natal, while Woolworths Now Now launched in Cape Town’s central business district almost a decade ago. Its latest Now Now outlet opened at Somerset Mall in the Western Cape, with another planned for Broadacres in Johannesburg.

Woolworths Holdings, founded in 1931, operates across fashion, beauty, homeware and food in South Africa, Australia and parts of sub-Saharan Africa. For the fiscal year ended June 28, 2026, the group reported revenue of R83.47 billion ($5.04 billion) compared with R80.24 billion ($4.85 billion) previously, profit declined to R2.33 billion ($140.73 million) from R2.45 billion ($147.98 billion), while total assets stood at R39.43 billion ($2.38 billion).